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Running a small business on PAN card do i need to form a firm?
23-Jan-2023 (In Startup Law)
I am going to start a web hosting service providing business. The business model is like this: I will rent servers from outside India and then sell them on my website. I will be dealing with Indian and Foreign customers. As I am a freelancer and not registered as a firm or company. Currently I am using my PAN card for dealing with all sales. Do I need to register for sole proprietorship ? As I have not ever earned more than 1.3 lakhs per year online and for such small income I was thinking it is not necessary to register as a firm. Please give me advice.
As far as compliance part is concerned as to what all should you need to take care of while doing this business then you need to have -
- a PAN Card to do business (you already have that),
- a Bank account which reflects the expenditures and earning of your business,
- an address along with its proof from where you are dealing in your business, and
- registration under service tax (since web hosting and providing servers is a service based business)
Most above pay due taxes to the Government of India as applicable under service tax as well as income tax if your earning crosses exempted limit.
My best wishes for your business.
35+
Adv. Pulkit Prakash
Delhi | 400+ Answers
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